Tuesday, February 14, 2012

Jewish Federation: Obama Budget Threatens Charitable Giving

Jewish Federation: Obama Budget Threatens Charitable Giving

The Jewish Federation of North America oppose Obama's budget for 2013, saying it threatens charitable giving.

Rachel Hirshfeld

The Jewish Federation of North America is opposed to the Obama administration’s fiscal 2013 budget that would limit the value of tax deductions for charitable contribution, saying that it would threaten charitable giving. The Orthodox Union said proposed changes could reduce charitable donations by $4 billion annually.

William Daroff, vice president for public policy and director of the Washington office of The Jewish Federations of North America said in a statement Monday, “Despite the fact that the White House had recently indicated that its tax reform proposals would not 'disincentivize' large charitable gifts, today’s Budget release is disappointing for America’s charities and the millions we support, particularly during this time of economic distress.

"The Administration has once again proposed limiting the value of charitable contributions. Such a change in the I.S. tax code will result in America’s charities losing billions of dollars a year in private support that our country desperately needs. As in past year, we will work with members of Congress to defeat this misguided proposal.”

Kathy Manning, chair of the Board of Directors of The Jewish Federations of North America stated, “We understand the need to find ways to address the country’s significant budget dilemma. Nevertheless, taking steps that would diminish charitable contributions at a time when so many American in desperate financial straits are dependant on the services of charitable organization is the wrong approach. We urge our government to find an alternative for increasing revenues that will not have an adverse impact on the very organization that are working to provide help to so many Americans who are struggling in these tough financial times.”

The Administration’s FY 2013 budget intends to “reduce the value of itemized dedications and other tax preferences to 28 percent for families with incomes over $250,000.”

Orthodox Union public policy director Nathan Diament said the OU is “deeply concerned over President Obama’s budget proposal.” He added that the proposal “is a recipe for harmful displacements and cuts in much-needed non-profit sector institutions and services.”

Only five days ago, the Federation praised President Obama for what it thought was his intention to maintain the current 35 percent limit for charitable deductions.

Orthodox Union public policy director Nathan Diament said the OU is “deeply concerned over President Obama’s budget proposal.” He added that the proposal “is a recipe for harmful displacements and cuts in much-needed non-profit sector institutions and services.”